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Overhaul on handouts

Caroline Wilson

Net operating loss ... The Western Bulldogs have posted a $136,000 loss, despite being the number one recipient of AFL equalisation money.

A RADICAL restructure of the AFL's revenue will take place in a bid to stem the growing divide between the rich and poor clubs - a divide the competition now recognises could seriously threaten the game's growth and long-term success.

The league has not ruled out increasing the gate admission tax paid by every AFL fan as one measure of raising revenue to help struggling clubs. While AFL chief Andrew Demetriou stressed fans would not be charged extra at the gate, he did not rule out increasing the gate levy to help equalise the competition.

The increased gate levy was one idea put forward by club bosses at last week's meeting of the 18 chief executives on the Gold Coast. Another was that the AFL increase its gate-sharing between clubs, diverting more money from blockbuster games to assist the weaker teams.

All 18 clubs have been instructed to put forward submissions before the start of the 2013 season in recognition that the struggling clubs have no hope of sustained success under the current equalisation model.

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Demetriou confirmed to Fairfax Media that he had called all 18 club presidents and chief executives to attend a day-long summit in March before the league's annual general meeting to thrash out the issues facing the competition's structure.

''There's a recognition from everybody that as the gap continues to grow we need to look at new ways of raising revenues or redistributing revenues,'' he said. ''The clubs collectively all agree on the principle that the game needs to do more to equalise the clubs and create an even playing field. We've set aside a day before the season launch to address the situation.''

At last week's meeting of clubs, the AFL put forward a number of international competition models, including the NFL model in which about 50 per cent of centralised revenue goes towards equalisation in a bid to improve the gap in the largely privately-owned American football market. Clubs were also given details of the structures in Major League baseball and the NBA.

The concerted push to turn around the growing divide between the richer and poorer clubs, where some clubs spend close to $10 million more on their football departments than others, was given extra momentum by Sydney chairman Richard Colless who put forward a paper at a meeting of the club presidents during grand final week.

The Colless paper, revealed by Fairfax Media, caught the attention of the AFL Commission, which while acutely aware of the issue took note of Colless' plea to involve club presidents in the debate.

Although some of the wealthier clubs initially baulked at the prospect of giving up more revenue from big games, Demetriou said he had been impressed by the spirit of co-operation among the chief executives.

Currently, $2 from each admission ticket to AFL games is taxed by the AFL, with a portion of that amount going to the equalisation fund. The move to increase the distribution of wealth to help struggling clubs comes little more than a year after the AFL announced a new equalisation structure following the $1.15 billion five-year broadcast rights deal.

News of the push to close the gap between rich and poor came as the Western Bulldogs on Monday announced a net operating loss of $136,679 for 2012. That loss came despite the club's position as the equal largest recipient of equalisation money of all 18 clubs.

■Demetriou confirmed the season launch in 2013 would return to Melbourne after last year's launch at the Sydney Town Hall, adding that the AFL was planning to relocate the 2014 season launch to Adelaide to celebrate the opening of the redeveloped Adelaide Oval.